Gold, Silver Prices Dip on Low Demand, Weak Global Trend!

Gold prices declined by Rs 55 to settle at Rs 27,075 per 10 grams at the bullion market on Saturday due to ease in demand from jewellers at domestic spot market coupled with weak global cues.

Silver also softened by Rs 190 to Rs 36,910 per kg on reduced offtake by industrial units and coin makers.

Traders said besides weak global trend, low demand from jewellers and retailers mainly led to the decline in prices of both the metals.

Globally, gold fell by 0.06 per cent to $1,181.30 an ounce and silver by 0.44 per cent to $15.96 an ounce in New York in yesterday's trade.

In the national capital gold of 99.9 and 99.5 per cent purity fell by Rs 55 each to Rs 27,075 and Rs 26,925 per 10 grams, respectively. Gold prices gained Rs 20 yesterday.

Sovereign also eased by Rs 100 to Rs 23,300 per piece of eight gram.

Following gold, silver ready moved down by Rs 190 each to Rs 36,910 per kg and weekly-based delivery by a similar margin to Rs 36,595 per kg.

On the other hand, silver coins continued to be traded at previous level of Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.

Story first published on: June 13, 2015 15:24 (IST)

http://profit.ndtv.com/news/commodities/article-gold-silver-prices-dip-on-low-demand-weak-global-trend-771315

Silver Prices To Outperform Gold In 2015!

I know it’s a bold prediction...silver prices are going to surprise investors and provide them with better returns than gold bullion. I say this because both the fundamental and the technical pictures for silver continue to improve.

Investing In Silver!

Demand and Supply:

The supply of silver produced continues to dwindle, while demand for the metal is robust. This is the perfect recipe for higher prices.

In Canada, a major gold-producing country, in the first nine months of 2014, mines produced 373,828 kilograms of silver.
 
In the first nine months of 2013, Canadian miners produced 510,390 kilograms of silver representing a 26% decline in silver mine production. (Source: Natural Resources Canada web site, last accessed December 9, 2014.)

Mine production in other silver-producing countries is also on the decline. As silver prices remain low, silver producers have less incentive to produce. And those whose production costs were too high have shut down their operations.

Meanwhile, the demand side for silver remains strong. From January 1 of this year to December 9, the U.S. Mint has sold 42.86 million ounces of silver in American Eagle coins.

In the entire year of 2013, the Mint sold 42.67 million ounces in similar coins. (Source: United States Mint web site, last accessed December 9, 2014.) Because of the holidays, December is usually a robust month for silver coin sales; hence, the number of American Eagle coins sold this year will only increase.

Demand for silver from India is strong, too. Ashish Mundhra, managing director of Mundhra Bullion, a precious metal dealer in India, said, “There is a tsunami in silver. Investors are pouring in.” (Source: “Silver Demand Returning, in Patches,”The Wall Street Journal, November 11, 2014.)

http://www.silverseek.com/article/silver-prices-outperform-gold-2015-13918